Investment themes to help guide you through uncertain markets

3Q 2012

Over the last few years, markets have been challenged by issues such as the eurozone crisis, high levels of U.S. unemployment and fears in China. Heightened volatility and uncertainty look set to continue in the face of slowing economic growth and large public sector debt burdens in developed markets.

Despite the ongoing headlines, we do see things that could go right in the world. We are finding potential positive catalysts and long-term opportunities in a number of areas, including a U.S. industrial resurgence, continued innovation in the technology sector, growth in energy infrastructure, and high income from credit strategies.

We recognize that entering markets now, while conditions remain turbulent, can be daunting. One approach may be to phase into markets. Investing funds on an incremental basis can help investors avoid moving too quickly into a falling market, or too slowly before a strong rally. This strategy may provide a way for you to move back into markets while helping to manage the impact of volatility.

Asking the right questions to guide your investment decisions
Today's unsettled markets highlight the importance of being fully diversified, as well as ensuring that portfolios are appropriately positioned which might help take advantage of opportunities across asset classes and geographies.

While short-term fluctuations are a fact of life, we believe that being invested, patiently riding out volatility, and searching out growth potential—even in the face of negative news—can be the key to building and preserving your wealth for the future.

To gain insight into our high-conviction themes for consideration in your investment portfolio, we invite you to click on the topics to the right.

If you have any questions or would like to hear more about ways to take advantage of the opportunities we're seeing in today's markets, please contact your J.P. Morgan Securities Financial Advisor.